Growing opposition to new data centres across the United States is fueling concern among industry leaders and some policymakers about the country’s ability to maintain its competitive edge in artificial intelligence (AI). As the nation faces an intensifying AI race with China, data centres—facilities that house vast computing infrastructure—are regarded as critical to powering and advancing AI technologies. However, a surge of political resistance, seen across party lines and states, has raised questions about the future development of these facilities.
Data centres, which often resemble large warehouses, are essential to supporting a range of digital services—from cloud computing and video streaming to AI model training and real-time data analysis. The U.S. currently hosts more than 5,400 of these centres, which underpin much of the modern economy. Without sufficient expansion, experts warn that the country may fall behind global competitors, jeopardizing economic growth and national security.
Political opposition has grown notably during the current election cycle. Progressive voices, including Senator Bernie Sanders, have called for a nationwide halt on new data centre approvals. Democrats in competitive Senate races have echoed similar concerns. In Ohio, Senator Sherrod Brown has featured data centre development as a central theme in his re-election campaign. Illinois Governor JB Pritzker, once an advocate for data centres, has adopted a more cautious stance, while Pennsylvania Governor Josh Shapiro recently issued an executive order restricting their expansion.
Republican officials have also voiced apprehension. In Wisconsin, GOP candidate Tom Tiffany criticized his opponent with ads highlighting data centres' environmental impact. Texas Governor Greg Abbott paused approval processes for new construction pending a statewide review, citing worries over data centres' use of power and water resources and blaming AI firms for the backlash they face.
Critics point to concerns over energy consumption, water use, and potential environmental consequences. However, data centre proponents emphasize that modern facilities utilize advanced technologies that significantly reduce pollution and water usage compared to traditional industrial operations. For example, natural gas generators powering many data centres emit substantially fewer harmful pollutants than steel mills, and water consumption is tightly managed with recycling systems in place. Microsoft’s new data centre in Wisconsin is projected to use an amount of water equivalent to only about four Olympic-sized swimming pools annually—a fraction of water used by local golf courses.
Economic benefits are also cited. Data centres contribute substantial property tax revenue, helping fund local services such as education. In Loudoun County, Virginia, known as “Data Centre Alley,” the absence of these facilities would result in an estimated additional $5,800 annual property tax burden per household. Similarly, a data centre operated by Meta in Louisiana has enabled teacher bonuses of up to $50,000 through tax revenues. Construction and operation create well-paying jobs, especially in skilled blue-collar sectors.
On energy costs, analysts contend that data centres have not driven recent electricity price increases, which largely reflect broader inflationary trends and regional climate policy effects. Some studies suggest data centres actually help stabilize electricity rates by distributing fixed grid costs across higher power demand. Developers often agree to cover incremental infrastructure expenses linked to their operations.
While the Trump administration previously facilitated collaboration among AI firms, utilities, and policymakers to address data centre development challenges, recent debate over these facilities appears fueled more by anxiety and misinformation than by objective assessments of their impact. Critics of data centres have often also opposed projects like shale fracking and liquefied natural gas exports, which supporters argue support U.S. economic strength and geopolitical positioning.
Former President Donald Trump recently underscored the issue on social media, warning that restrictions on data centres would hamper job creation and tax revenue, ultimately benefiting China’s Communist Party in the global AI race. As political campaigns continue, the future of data centre expansion remains uncertain amid competing local concerns and national strategic priorities.